Michelle Ananda-Rajah (Victoria, Australian Labor Party) | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. Yesterday, the Albanese Labor government's next round of income tax cuts came into effect alongside a pay rise for millions of workers, cheaper fuel at the bowser and paid parental leave reaching a full six months for the first time. This support is arriving while global pressures continue to push up the cost of living. What support came into effect yesterday and how will it make a difference for Australian workers and their families?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) | Link to this | Hansard source

I thank Senator Ananda-Rajah for the question. It's an important question about how governments can work on and implement policies that assist households with cost-of-living pressures, as we have done consistently since coming to government. Today is 2 July, one day into the new financial year, a financial year that delivers an additional tax cut for every working Australian and, of course, builds into our tax arrangements the new instant tax deduction—the $1,000 off your taxable income with no receipts—and the working Australian tax offset. That will also be part of our tax law from now on and allows us to provide a tax offset for those who are earning wage income through the tax system.

In addition to that, when you look at those tax cuts in conjunction with the tax cut already delivered and those ones coming down over the next 12 months or so, it will mean that the average worker will save up to $2,800 a year. That is a big help. When we know families are balancing pressures on household budgets, to be able to have that additional income coming into the house is really important.

On top of that, we're undertaking a range of measures, including, for new families, the extension of paid parental leave to a full six months, with superannuation paid on that, the new minimum wage and award wage increases, which will again be very welcome in those households that rely on those wage adjustments to help them meet costs of living. Three million workers will benefit there. And, of course, there are all of our other investments into Medicare urgent care clinics and cheaper medicines and the funding that we've provided in schools and hospitals to make sure that those basic services are properly funded.

Sue Lines (President) | Link to this | Hansard source

Senator Ananda-Rajah, first supplementary?

Michelle Ananda-Rajah (Victoria, Australian Labor Party) | Link to this | Hansard source

Thank you, Minister. The Albanese Labor government is also backing small businesses with billions in tax support so that they can invest and grow and by providing practical help to make the most of new technologies. How is the government supporting small businesses to get ahead?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) | Link to this | Hansard source

I thank Senator Ananda-Rajah for the question. She is a very strong advocate for small businesses both in her state and around the country. We have in this budget recognised with a significant investment package the importance of small business and the way that the tax system can work to support them to invest, manage cash flow and build capability, with $3½ billion in tax support measures. In addition to that, we have the $25 million in round 3 of the Digital Solutions program, which is helping small business adopt digital tools, grow online and stay secure. More than 15½ thousand small businesses have already benefited from this program, receiving over 33,000 hours of coaching and participating in more than 1,700 workshops. Digital capability is an issue that a lot of small businesses in Canberra raise with me, and so this is a really important program that is helping small businesses.

Sue Lines (President) | Link to this | Hansard source

Senator Ananda-Rajah, second supplementary?

Michelle Ananda-Rajah (Victoria, Australian Labor Party) | Link to this | Hansard source

What other support is on the way for households and small businesses, and why is the Albanese Labor government so determined to deliver it in full?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) | Link to this | Hansard source

I thank Senator Ananda-Rajah for the second supplementary. Delivering on cost-of-living support is our No. 1 priority, and it has been since we came to government, in conjunction with dealing with all of the other areas of dysfunction and neglect that we inherited—in energy policy, in aged care, in early education and care, in the environment, in our trade, in our international relationships and in the budget.

We have also, while undertaking that work, been implementing new measures to help families with cost-of-living pressures. The tax changes are a really important part of that, but so are our other investments—whether in energy bill relief, in our Medicare urgent care clinics, in tripling the bulk-billing rate or in making sure that people can get access to more medicines, cheaper medicines, with 60-day dispensing. They are all part of our plan to make sure we're doing whatever we can to help families with those cost-of-living pressures.